Franklin D. Roosevelt, the 32nd president of the United States said, “In politics, nothing happens by accident. If it happens, you can bet it was planned that way.”
- The US government spends $1 – $2 Trillion more each year than it collects in revenues, using strictly cash accounting. This is not sustainable. But the deficit is actually far worse when accrued liabilities are included – as calculated by Laurence Kotlikoff. Using his numbers, the fiscal gap is approximately $222 Trillion, up about $11 Trillion from last year. The fiscal gap (present value difference between projected future spending and revenue) increased about $11 Trillion in one year because the projected future liabilities dramatically increased compared to projected future revenues. The fiscal dilemma of the US Government is actually far worse than the official budget deficit. Clearly something must drastically change.